Categorized | Affiliate Marketing

Affiliate Giveaway Referral Strategy – An Attractive Affiliate Scheme With Public Participation

I have been reviewing a new marketing strategy that has been steadily growing with the Internet since 2005. Mainly looking at giveaway referral websites that promise to give its members free prizes in return for signing up to an offer (which they provide on their site) and then referring a number of other people to do the same.

Initially, when I first heard about these site's I thought there has to be a catch of some sort, I thought no business is going to pay for the expensive gift's in return for a few people visiting their site and MAYBE signing up to become a customer . Well, this was way back in 2005 and I can tell you, since then my opinion has changed some-what.

These websites have been steadily growing in popularity over the years and they have not been short of people signing up. The prizes that have been given away have gone into their 1000's and some UK based giveaway businesses are starting to branch out into the US.

So, why does this work? How can a business afford to pay such high high amounts for a few customers? This giveaway site then becomes an affiliate for all the companies who are offering links from the giveaway site. These affiliate contracts are usually quite lucrative for the Giveaway website, getting as much as £ 17 + (in the case of LoveFilm.com) per customer generated. The giveaway site then puts these affiliate links on their site and rewards their customers for clicking and becoming a customer of their affiliate. Because the amount the Giveaway site receives from there affiliate is quite high this enable the giveaway site to offer their customer expensive gifts for getting anything from 5-25 participants to sign up.

Now, because a customer wants to receive their free gift, it means that they have to generate all the leads for the giveaway site. This means that the giveaway site is advertised by their own list of customers. Sort of creating a giant web on the Internet, starting with the affiliate company, then the, giveaway site, then the, giveaway customer. This system generates huge amounts of traffic for the affiliate company and gives them enough customers to pay high affiliate rates

My conclusion of this whole scheme is it is a genius idea that is a win, win situation for everyone involved. If you're a company selling a service over the Internet then using a giveaway site would generate your business and provide you with many customers because you will be the center of the web.

The actual giveaway would make a steady income but this would also mean covering the costs of the free gifts. An advantage for the giveaway site is sometimes a customer might not reach their referral target, but if they are for example two or three short the giveaway site would receive the commission from their affiliate without having to provide the free gift.

Ultimately, I believe the person who benefits the most out of this is the customer receiving the prize. This person has received an expensive gift for minimal effort, literally just a matter of posting his / her referral link on as many forums and website as they can to generate enough referrals. This could even become a way to earn an extra income. After you have received your prize you can continue to generate referrals to continue getting different prizes. So in my books this makes this offer best for the person who wants to make a little bit of extra money on-line.

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